Answer:
Net advantage to repair the autos=$9,680,000
Explanation:
For Scrap:
Total sale by selling defective pieces as scrap=$8,000*7000
Total sale by selling defective pieces as scrap=$56,000,000
For Repair:
Total sales by selling defectives after repair=$12,000*7000
Total sales by selling defectives after repair=$84,000,000
Additional Cost on repair=$18,320,000
Remaining on selling defectives after repair=Total Sales after repairing-Additional Cost on repair
Remaining on selling defectives after repair=$65,680,000
Net Advantage:
Net advantage to repair the autos=Remaining on selling defectives after repair-Total sale by selling defective pieces as scrap
Net advantage to repair the autos=$65,680,000-$56,000,000
Net advantage to repair the autos=$9,680,000
